PSR publishes interim report for cross-border interchange fees market review
The Payment Systems Regulator (PSR) has published the interim report for its market review into cross-border interchange fees. It is now seeking views on its provisional findings and proposed approach to remedies to help inform the final report.
The PSR is proposing to introduce a price cap to protect UK businesses from overpaying on these interchange fees. Subject to the PSR’s final report and further consultation on remedies, this could happen in two stages:
An initial time-limited cap of 0.2% for UK-European Economic Area (EEA) consumer debit transactions and 0.3% for consumer credit transactions (where the transactions are made online[1] at UK businesses)
A lasting cap on these interchange fees in the future, once further analysis has been carried out to establish an appropriate level.
You can read more about this report and find out details on how to respond here.